by Structured Settlement Watchdog
There's a new brand of snake oil in town and it's being dispensed by Black Square Financial.
In a video featuring what Black Square Financial puts forward as an explanation of present value and structured settlement factoring discounts, Black Square Financial chose to use 10% interest rate on a savings account, implying that a structured settlement annuitant could sell their structured settlement payment rights and in 2017 get 10% on a savings account.
To put things in perspective, interest on a 6 month CD peaked at 17.98% in August of 1981 and fell to a low of 0.29% in January 2010 [ Source: Money-Rates.com]. Black Square Financial is speaking of savings account interest...savings accounts like the ones banks used offer a free toaster as swag to those who opened them, 36 years ago.
Here are where the 10 Year Treasury Yields were at the start of each of the last 5 decades
1970s: 7.08 percent
1980s: 12.64 percent
1990s: 8.65 percent
2000s: 6.02 percent
2010s: 3.83 percent
2011- "Savings account rates don't have a full 1 percent to lose anymore"
[Source: Richard Barrington CFA, Huffington Post]
Black Square Financial is based in Coral Springs, Florida so to give them the shredded benefit of the doubt, I searched for the possibility that savings rates in Coral Springs Florida were an anomaly.
Savings Rates at Credit Unions in Coral Springs Florida
Money Market Rates at Credit Unions in Coral Springs, Florida
Then I broadened the search radius a little
Given the range of historical returns local rates being readily available why would Black Square Financial choose to use a savings rate not seen for more than 30 years in its example?
Is Black Square Financial ignorant or being deceptful? I'll let you decide.
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